In order to commence manufacture of excisable goods, it is necessary for every manufacturer to register himself with the Central Excise authorities. A separate registration is required for each factory of the manufacturer in which duty paid goods are intended to be stored and cleared. An application for registration must be filed for registration in the prescribed form duly signed by the proprietors, partners, directors or authorised persons along with the required details such as complete ground plan incorporating the layout of the factory together with the intended place of storage of finished goods. The Central Excise authorities will scrutinize the application and if found proper in all respects, grant registration in Registration Certificate made out in Form R4.

After obtaining the registration certificate and before commencement of manufacturing activities, the manufacturer must intimate to the excise authorities the intended date of commencement of manufacturing operations.

The manufacturer is required to intimate the excise authorities details of plant and machinery used to manufacture the product. On completion of manufacture, the finished goods must be kept in the bonded store room specified in the application form. The goods can be removed from the store room only on payment of duty or against modvat credit.

The manufacturer has to make entry in Register RG1 on transferring the goods to the bonded store room. Entries in RG 1 are to be made on a day-to-day basis. If on any day, there has been no production, it must be mentioned that production on that day is nil. The stock as per RG 1 and actual stock must tally. Failure to do so will attract penalty and confiscation of goods not found in excise records . A proforma of RG1 is given below.

Once the goods are ready for removal, the manufacturer must mark on each wholesale package in clearly legible the following details:-

• Running serial number of the product.

• Batch number or lot number, if any, of the goods.

• Number of retail packages contained in each wholesale package.

• Distinguishing letter or word or combination of both denoting the kind or quality of goods.

The record should be made in such manner that there is quantity as well as numerical control over goods manufactured.